This year has produced some major legislation affecting real estate and mortgage lending practices in the State of Michigan. Earlier in the summer, I wrote about a New Disclosure Law which went into effect on July 1, 2008 for Real Estate Brokers.

This disclosure provides a clear definition of the contract for services in hiring a real estate broker. The New disclosure also requires that a Minimum Service brokerage indicate which services they are/are not providing and reveal these limits to potential clients, thus hopefully clearing some of the confusion surrounding WHAT real estate brokers actually are DOING to provide VALUE to the real estate transaction.

Within the next 6 months, another far reaching piece of Legislation, Public Act 60, will also go into effect. This impacts the lending industry. The legislation has been in process for some time and predates the current lending crisis. Public Act 60 will require that loan originators in Michigan be registered with the State of Michigan to legally conduct business. A continuing education requirement has been added which includes 24 hours of Pre-licensing education and 6 hours of yearly Continuing Education Credit on a yearly basis.

Michigan now joins a list of 26 other state which require loan originators to be licensed. The Act does not cover banks but only applies to mortgage brokers. There are on going challenges still being resolved with the implementation of Public Act 60 which will be enforced starting January of 2009. Perhaps some of the most significant questions are:

1. What the Registration Process will cost

2. What the educational coursework will contain although broad perimeters have been established

One of the most important aspects of the Act, in my opinion is the requirement for criminal background checks for all loan officers. Readers of my blog may remember a post I wrote last year in which an individual interviewed for a job as an agent in my office. He was a convicted felon and yet was processing loans. The rub was that his conviction was for...fraud and financial theft.

In an article for the Ann Arbor Business Review, Carol Marshall offers a comprehensive analysis of the impact of the new law in addition to some of the cautions in regarding it as a solution to ALL the problems the industry faces. One lender is quoted as saying that just because someone can pass a test and a criminal background check does not mean that they are a good person or an ethical lender.

Well, that's the truth. We've had licensing requirements for agents and brokers for many years in Michigan and there are still bad apples in the lot. However, the process needs to start somewhere. It makes no sense to me that hair dresser and barbers in the State of Michigan still have educational requirements much more stringent than those required for real estate professionals and mortgage lenders.

In a real estate market in which just under 1 out of 2 homes which are actually SOLD are Short Sales or Foreclosures, more home sellers in the Grand Rapids, Michigan area are inquiring about if a Short Sale may be a viable path to consider.

It is no secret that there has been a precipitous slide in home prices over the past year.  This coupled with the sub-prime mortgage mess has placed some home owners into a situation in which the Value of their home is LESS than what they currently owe  on their mortgage payment.  In some cases...way less.  As a result, some home owners are bringing thousands of dollars to the closing table to make up the difference owed to the bank.

But what can you do if you don't have Thousands of Extra Dollars sitting in a bank, savings or retirement account?  Unfortunately, this is a question, many home owners are asking.  Individuals who have to move due to a job loss, illness or divorce.  Individuals who can no longer afford to stay in the home they bought.

Short Sales are complex real estate transactions.  Although banks do not want to 'own' real estate, they are often less than cooperative in situations in which the debt obligation to them will not be fulfilled.  To make the case to the bank about the specifics of your situation and your intention to try to fulfill your obligations to the best of your ability, it is wise to hire a real estate agent who has successfully completed Short Sale negotiations and who understands the intricacies of the process.

There are several stages within a Short Sale Negotiation.  The first determination is to gain a comprehensive understanding of your specific situation.  Questions which need to be answered include your payment history and a complete analysis of your financial resources; including a detailed rendering of any extenuating circumstances which may impact your ability to repay your obligation.

The home in question must also be verified through a market analysis to substantiate the loss in Value.  This will often include not just a real estate broker evaluation but also an independent appraisal or Broker Price Analysis from another source.  Then the home must be marketed aggressively, as NOTHING proceeds forward until you obtain a viable buyer.

Once an offer is tendered, the real 'fun' begins.  In some instances, we have encountered Loss Mitigation Specialists assigned to handle up to several hundred files at a time.  The pressure on them is enormous and they often fail to answer their phones or respond to any attempts of communication.  It is here that hiring the RIGHT agent makes all the difference in the world. 

It is important that your real estate agent/broker possess the following qualities when negotiating a Short Sale.

1.  They must UNDERSTAND the process...knowledge of the different aspects of foreclosure & short sale

2.  They must KNOW how to price your home to actually SELL

3.  They should have a good INTERNET presence to attract the largest pool of buyers

4.  They must be PERSISTENT in their negotiation efforts

5.  They should have an inherent grasp of the DETAILS to ensure that all parties remain informed

6.  Your agent must be DETERMINED to represent your best interest

Successful Negotiation of Short Sales is a mandatory element of the training which the agents of Audu Real Estate receive during their 1-2 year apprenticeship.  Audu Real Estate has successfully short sales on behalf of our clients. 

We strive to conduct our negotiations in a way which honors the dignity of those involved and protects their privacy.  If you'd like additional information or a private consultation regarding your Short Sale options, please contact us at: info@audurealestate.com.

Related Links:

Additional Real Estate Short Sale Articles by Audu Real Estate

Are you tired of having to go out on your weekly real estate agent home tour?  Does the price of gas make this seem like a waste of time and money? If you're like many agents who work out of their homes, these questions are front and center when you're thinking about IF you will join the broker tour in any given week.

Since we have several newer agents in our office, they wanted to have this experience, so we arranged to tour some of our home listings.  It was quite an outing.  

When I started thinking about the potential outside of my traditional perspective, all sorts of new ways of Marketing came to my mind. Here are some other ways to make your Home Tour a viable marketing activity which continues to reap dividends long after you've been out for several hours in your car.

On this tour, I decided to try something new myself and took my camera along.  Take a look at what I did on Facebook. 

Post your Tour Link with tinyurl to Twitter, to tell people in your local area and beyond what you've been up to.

Upload pictures of your tour and places of interest to your LinkedIn profile.  Invite people to ask questions about the places you saw and the homes you have listed.

Share more than just listing jargon...talk about the area, sites of interest and nearby attractions.

Post pictures and/or video to Flickr.com

Post pictures and/or video to Facebook.  Share your album with Friends

Make a YouTube video about the area and the homes you see.  Start a series as the local tour expert in your area.  This can be very effective if you have a speciality such as highlighting a Foreclosure Tour of your local area.

Do a Real Estate Show on your tour and then export it all over the place.  It will also index on google for all the addresses you mention.

And then of course...blog about it!

These are just a few simple suggestions on how you can take an activity like real estate touring which seems to be loosing steam and reinvigorate it with fresh perspective and imagination. 

This type of thinking not only creates ample promotion opportunities, but is a way to create true Value to your clients in the successful marketing of their home in ways that can be effective beyond the traditional norms of showcasing an area and listing.  Today's homebuyer is shopping in a million different places.  Are you engaging your buyer where they're looking?

Pictures of homes from Audu Real Estate Home Listing Tour of June 23, 2008

Copyright 2008  Audu Real Estate  All Rights Reserved

Summer weather roared in with blazing high temperatures and strong storms here in Grand Rapids, Michigan!  It's been a little while since I've been able to look out my window at a clear blue sky and gently swaying trees.  In some ways the recent rush of climatic activity is a metaphor for the real estate situation here in West Michigan.

2008 has been a year in which we have seen some stormy conditions.  The year commenced with the down draft in the mortgage sector due to the sub-prime lending crisis.  In fact, until just recently, most of West Michigan was considered a declining market which meant that New Home Buyers were being asked to bring additional money to the closing table to close loans.  Money which many of them were hard pressed to find. Zero down programs evaporated into the cosmic ethers.

Yet, not all the news was bad.  In the midst of this tempest, affordability levels increased as the prices of homes plummeted sharply creating all sorts of opportunities for buyers and investors to pick up properties at rock bottom prices.  Home owners learned hard lessons about the laws of supply and demand Because bank owned properties now constituted almost 1 out of every 3 sales, marketing times increased to almost a year and homes that were not priced correctly were all but ignored.

In an environment in which so many winds of change are raging, it's often difficult to decipher exactly what is going on.  Recently, Jennifer Granholm the Governor of Michigan signed some important legislation into LAW!  It's the Agency Responsibility Act (ARA)  I think that this legislation is one of the best things to emerge out of the storm which has engulfed our industry.

The Governor's signature on the acts is the culmination of the Michigan Association of Realtors hard fought efforts to clarify for consumers the real estate services that were being provided by various agencies.  This movement was brought about by the amazing discovery that the ONLY duties imposed by statue or rule of law when representing seller or buyers or real estate property were:

The duty of agents to present offers to sellers within a reasonable period of time

The duty of listing brokers to review and sign the closing statements.

ASTOUNDINGLY, THAT WAS IT!

While most Realtors® were offering substantially MORE than this, the public had limited understanding of the potential vast difference of service levels between brokers because all brokers were using the "Exclusive Right to Sell Contract." (Buyers usually are serviced under a Buyer Agency Agreement)

As a result of this legislation, brokers who do NOT provide the required MINIMUM service levels will now have to use a LIMITED SERVICE AGREEMENT form which clearly defines exactly what they are doing or NOT doing.  The ARA also amends the law to make it a VIOLATION of the Occupational Code if a Realtor FAILS to provide all Statutory Services unless they are expressly waived by a client in a limited services agreement.

The is a huge advancement forward for the rights of consumers to ensure they understand exactly WHAT they are getting when they sign up with a real estate broker.  I think it will help to dispel some of the misunderstanding and confusion which has marred the positive perception of the real estate industry. 

Sometimes, it takes a storm to bring out the best in nature.  Today, my lawn is a gorgeous green and the flowers are blooming.  It may have been a little rough getting here, but the results I'm witnessing make it worth it.  The Act becomes effective as law on July 1, 2008. My hope is that the turmoil in our industry will continue to yield changes which serve the good of our profession and the clients we have the privilege of assisting.

Copyright 2008  Audu Real Estate  All Rights Reserved

One thing that showing hundreds of homes through the years teaches you is this...Home Sellers can do a lot to show their home in a manner that gets it SOLD! 

I have always found it mildly astonishing that homeowners who spend thousands of dollars in upgrades and improvements to their homes fail to invest time and effort in a few critical areas to ensure that their homes are perceived well in the eyes of potential buyers. 

Some homeowners might be surprised to find out how far a little money will go.  Particularly when you put $500 against a backdrop of tens of thousands of dollars which are left on the table because a home does not sell or sells far below the listing price.

Here are just a few Simple Things to Keep in Mind when you are showing your home to ensure it shows Sold!

Show It!...

In a competitive market, there are hundreds of homes vying for a buyer's attention.  There are some homes which don't receive even ONE showing request in a 6 month period.  When you place your home on the market, be prepared to SHOW IT.  If you're not...WAIT, until you are.  Yes, it may cost you a little in sleep and inconvenience, but in this market, if a real estate agent calls to show your home when there are 50 others like it...don't count on being given a second chance. 

Tip:  Save time, money & frusteration by being AND staying ready to sell!

Clean It!

If you can't clean your home...hire someone else to do it for you.  Why deduct Thousands of dollars from you life through a possible sale just because you can't or don't know how to clean a home.  Buyers love the smell of 'clean' about as much as they like the smell of 'new.'  A good new home cleaning crew will cost about $250...loss of a sale or a discount on a home on the market for over 6 months...15-20 percent of your initial asking price. 

Tip:  Even if you don't hire a stager, do your own research.  Visit Open Houses for local builders & show rooms of furniture stores to get ideas.  Then visit a thrift shop to pick up accessories at rock bottom prices.

 Clear It!

De-Cluttering is probably the single biggest thing that most homeowners can do fairly inexpensively to Show their Home Sold! Hire a storage unit...beg your friends to store stuff in their basement; whatever you have to do...get your stuff out!

But, to clear your home most effectively will require going beyond the basics of clearing out excess furniture and belongings and neutralizing.  Sometimes you need to do just a little more to be most effective...

Tip:  There are moving services which will store your stuff and then move it to your next home for one fee.  Look into this sort of company for storing & moving to save money.

Stage It!

Hiring the Services of a professional stager to primp your home may be the best investment you can make in the home selling process.  Staging does not need to be an exorbitant cost.  In fact a good staging experience will probably save money  by attracting more potential buyers or creating a better response to your home when it is shown. 

Think about this...What bank or investment fund would give this sort of potential return on your investment of $500?  Where else could you put in $500 and enjoy living in a nice, clean well arranged environment with the potential of making it back fairly quickly by a Sale? 

Tip:  Make sure your stager has been trained and certified.  Ask to see pictures of homes they have staged and for references.  A good stager is worth it!  Good Staging will make you more money from your home sale!

Copyright 2008  Audu Real Estate  All Rights Reserved

BLOG DISCLAIMER

The information contained in the articles on this, blog is the property of Audu Real Estate. Comments posted in response to individual blog posts are the opinions of the respondents. Audu Real Estate is not responsible for the opinions, thoughts or ideas expressed by visitors to this blog nor for any liability for any damages or losses direct or indirect that may result from the use or reliance on information contained herein. The information provided is deemed reliable but not guaranteed. This blog is provided for informational purposes only. Readers are advisedto contact a real estate professional for specific counsel related to their individual real estate needs.

Blogging is taking the nation by storm. In case you haven't noticed...they're everywhere! Infact, according to Technorati, a leading aggregator of "all things blogs related," over 175,000 new blogs are being created every day.

Blogs are becoming a part of every type of business. They span the relm of politics, religion, education, sports, real estate, retail, electronics, medecine...you name a topic or interest...someone, somewhere in the world is blogging about it.

Perhaps, you have wondered how to start a blog. You may have even bought a book or taken a class to help you get started. But you still find yourself stumped. You're paralyzed at the prospect of starting or...maybe, you just need a little personalized direction to help you to develop your blogging voice.

Don't worry. Help is on the Way! We have developed two Training Options for professionals who want more in depth instruction about blogging. These tools are designed to:

1. Help you to overcome Your Resistance to Getting Started

2. Evaluate the Focus of your Blog.

3. Suggest Topics to Write about

4. Enable New Bloggers to Find their "Voice."

5. Provide helpful critiques to enhance the effectiveness of a blog post

6. Teach Blogging Etiquette.

7. Make Your Blog an Effective Lead Generation Platform

The following class options are available:

Blogging Therapy^TM ~ Individualized Coaching Sessions (one hour) These sessions are designed to allow for individual attention. They are available for Brand New Bloggers and more experienced Bloggers.

Sessions are tailored to address specific issues such as: Creating an Effective Blogging Style, Making a Blog Post Attractive, Cultivating a Blogging Community, Developing a Blog Theme, Optimizing & Expanding your blog's Reach On Line, Generating Leads & Profits from your Blog.

Requirements: Access to a computer, phone and Internet connection. Highly recommend high speed wireless connection to make the best use of the session training. Payment for all sessions must be received in full prior to commencment of training.

*Training for Individual coaching sessionswill be conducted via telephone by appointment. Live coaching sessions are available.  Please call for price quote.

Cost per session: $120. Call or e-mail for quote regarding a Package of 3 Sessions.

Option #2 ~ Blogging Boot Camp^TM~ This option is available for groups ranging between 5-10 individuals per session. Group Sessions are 2 hours in length. Topics covered include many of the topics available in the Blogging Therapy^TM  option. Group sessions can also be customized by written requests recieved at least 1 week in advance of the session. Customized requests are not guaranteed.

Group sessions can be conducted at client's premisis. These sessions will require participants to bring a laptop. A room rental fee of $150 will be assessed in addition to Blogging Boot Camp^TM costs for groups of 6 or more individuals unless suitable accomodations are available at the clients premisis to include access to computers with high speed internet availability.

Blogging Boot Camp^TM Costs: $100 per person for a 2 hour session. A Non-Refundable $100 Fee is required to reserve a date for Blogging Boot Camp^TM. Payment must be received in full prior to the commencement of training. An Advance booking of at least 2 weeks is strongly suggested to reserve a date for Blogging Boot Camp^TM.

Cancellation policy: Full refund 10 days prior to the event, 50% refund 5 days prior to the event. All other cancellations less than 5 days prior to the event will be charged the full fee. A Non Refundable Deposit of $100 is required to hold and reserve a date for the Blogging Boot Camp^TM.

NEW OFFERING 2008!

Marketing Your Brand in a Web Connected World!

Did you know that "Who You Are" online has become a very valuable commodity?  Your online Branding is key to your success in the emerging business marketplace.  Learn how to create a Successful online presence and connect to new opportunities for business and networking in this interesting and interractive course. 

Time:  2 hours

Cost:  $75

For further inquiry or to book a Session, please e-mail: laudu@grar.com. or call 616-791-0511.

To Read articles that Lola has written about a Variety of Blogging Related issues...Click here

Visit Lola's Blogs on line:

http://www.activerain.com/blogs/auduhomes

http://laudu.realtownblogs.com

*Policy is subject to change without notice.